At some point in your company’s history, your leadership spent time writing out your primary goals and the plans for reaching those goals. When was that?
Do you still refer to those documents? Does your plan address all factions of your business as they exist today? If it was pre-Covid, things have likely changed beyond what you had imagined. It’s also likely that your strategic business plan does not directly address innovation.
Strategic plans incorporating the inevitability of innovation have a few things in common. They integrate past lessons but also establish a channel to address change in a way that can benefit your company. As you approach innovation in your new strategic business plan, here are a few things to consider.
Factor in Risk
Industries such as manufacturing and development tend to be conservative when it comes to adopting change. That means digital transformation and cloud-based software may just be becoming a priority. But the world is changing rapidly. Technology and automation are becoming more and more integrated into our daily lives. The use of data in marketing and decision-making is taking more of a front seat across industries. Your workforce and rising leaders need to be prepared to compete comfortably in whatever changes take hold.
Any form of innovation has a degree of risk associated with it, and factoring education, training, and exposure to competition into your strategic plan can offset that risk. Your employees see a different side of innovation within your industry as well, so continue to listen to their perspectives and ideas. Allowing employees to take risks might just put you at the forefront of change.
Leverage Diversification
Your financial planner encourages you to diversify your investment portfolio and to take a long-term view of your investments. The same is true of your “people” investments. Most likely your strategic plan accounts for fluctuations in supply and demand, but what about age and skill sets?
It’s no secret that industries like manufacturing are aging. According to the US Labor Department, manufacturing lost more than 4 million workers over the past century, and they predict it will face a 2.4 million shortfall by 2028. In a 2017 study published by the National Association of Manufacturers (NAM), Deloitte, and the Manufacturing Institute, fewer than 3 in 10 parents would encourage their children to undertake a career in manufacturing.
An innovative strategic plan should address solutions for the growing staffing obstacle and provide for attracting the talent you will need to continue to thrive and grow. Leverage your current strengths and provide advancement opportunities. Don’t get stuck needing leaders or new proficiencies.
It’s difficult to be competitive if you’re planning the way you did 30 years ago. An organization perceived as a relic from an operations, recruiting, or product/services production standpoint will struggle to recruit and grow in an already difficult market. A strong company culture, transparent communication style, and opportunities for advancement can make your company appealing to younger generations looking to set their career trajectory.
It’s Time for a New Strategic Plan
Here are some questions your leadership team should ask. If you’re not including directions for how to navigate innovation challenges in your strategic plan, it’s time for a reboot.
- How is your company planning to embrace data analytics, AI, and metrics?
- How will you recruit and become an employer of choice?
- When did you undergo your digital transformation? If you haven’t, it might be time.
- Are educational institutions helping recruitment in your industry or hindering it? How will you address that?
- What is your plan for developing leaders?
Liddell Consulting Group works with leaders to define the future by identifying the essential initiatives and the people who can help maximize growth. We help bring the root cause of what business is facing to the forefront so problems can be resolved. If you are interested in learning more about our strategic business planning services or how it can help you incorporate innovation into your strategic business plan, contact us today.
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We know that every company has a unique set of challenges. Our perspective can help simplify what needs to be improved and our time-tested methods can provide clear steps toward your performance goals. Contact Liddell today.